REG-Petra Diamonds Ltd: Partial Tender 5 sale results for Finsch and Williamson; Cullinan sales postponement

Petra DiamondsAnnouncement

09/04/2025 07:02

 


 

 

 9 April 2024  LSE: PDL  

 

Petra Diamonds Limited

(Petra or the Company)

 

Partial Tender 5 sale results for Finsch and Williamson; Cullinan sales
postponement

 

Petra announces partial Tender 5 results, which include the sale of goods
from its Finsch and Williamson mines but not from its Cullinan Mine.

 

The Finsch and Williamson sales, which were concluded prior to the recent
announcement of the US tariffs, resulted in total sales of 176kcts sold for
US$18 million. Overall average prices increased 9% on Tender 4 due largely to
like-for-like prices increasing 8%, with the balance attributable to product
mix.

 

Tender 5 sales for the Cullinan Mine were originally expected to complete by
the end of this week. However, the US tariffs announcement late last week has
resulted in considerable diamond market uncertainty.  In response to this,
Petra has decided to postpone its Tender 5 sales for the Cullinan Mine (c.
200,000 carats) until there is greater clarity around the impact of the
tariffs. We believe this decision will lead to more supportive market prices
being obtained for the Cullinan Mine goods. 

 

The results of Tender 5 FY 2025, excluding Cullinan Mine goods, are:

 

                         Tender 5 FY 2025 Apr-25  Tender 4 FY 2025 Feb-25  Variance  Tender 5 FY 2024 Apr-24  YTD FY 2025 Tenders 1-5  YTD FY 2024 Tenders 1-5  
 Diamonds sold (carats)  175,643                  181,857                  -3%       186,244                  1,018,395                1,177,064                
 Sales (US$ million)     18                       17                       +6%       21                       103                      138                      
 Average price (US$/Ct)  101                      93                       +9%       115                      101                      117                      

 

Excluding Cullinan Mine goods, total revenue YTD FY 2025 from rough diamond
sales is US$103 million, compared to US$138 million in the first five tenders
of FY 2024.

Mine by mine average prices for the respective periods (excluding the Cullinan
Mine) are set out in the table below:

 US$/carat   Tender 5 FY 2025 Apr-25  Tender 4 FY 2025 Feb-25  YTD FY 2025 Tenders 1-5  YTD FY 2024 Tenders 1-5  FY 2024  
                                                                                                                          
 Finsch      76                       67                       76                       99                       98       
 Williamson  163                      173                      169                      200                      191      

 

In light of ongoing market uncertainty (including as a result of the US
tariffs) and the product mix issue at Cullinan described below, the Company
will continue to keep its pricing assumptions for FY 2025 under review.

Product Mix at Cullinan Mine

 

The Cullinan Mine goods postponed from the Tender 5 sale have experienced
product mix variability. This has been caused by a lower number of gem quality
stones than expected, specifically in the +10.8 carat category. This issue
also resulted in lower than anticipated revenues and average prices for the
Cullinan Mine's goods in Tenders 3 and 4, as announced in December 2024 and
February 2025, respectively. The Cullinan Mine has a history of experiencing
product mix variability. This is expected given the maturity of the C-Cut
ore-body and we expect the product mix at Cullinan Mine to normalise as the
proportion of fresh ore from the CC1E project increases. While we have not yet
seen a marked improvement in the product mix at the Cullinan Mine, in recent
weeks Cullinan Mine has produced some +10.8ct high quality gem stones,
including an 81ct D colour, Type II stone which the Company expects will
provide some support for average prices in the next tender.

 

FY25 Net Cash Target

 

As originally announced at our Investor Day in June 2024 and more recently in
our interim results for H1 FY 2025, Petra has been targeting net free cashflow
generation from FY 2025. In response to persistent market weakness, Petra has
continued to further reduce its costs and optimise capital, including through
a multi-stream Business Restructuring Plan that commenced in December 2024.

 

Despite delivering on our FY 2025 cost and capex targets to date, the poorer
product mix experienced at Cullinan Mine and ongoing market uncertainty means
that Petra is unlikely to achieve its net free cashflow generation target for
FY 2025. This assessment could however change if product mix and market prices
significantly improve over the next 3 months.

 

Business Restructuring Plan & Q3 FY 2025 Operating Update

 

As part of the implementation of the Business Restructuring Plan, Petra has
completed the section 189 (retrenchment) process affecting our Group and South
African operations support functions.  This was initially announced in
December 2024. Petra is also close to finalising its Life of Mine reviews
which is the final element of the Business Restructuring Plan to right-size
its cost base.

 

Petra intends to provide an update on the Business Restructuring Plan and the
Q3 FY 2025 operating update together with the results of the postponed
Cullinan sales tender, with such sales tender concluding once there is greater
market certainty around the impact of the US tariffs on diamond markets.

 

 

~ Ends ~

 

 

For further information, please contact:

 

 

 Petra Diamonds, London  Patrick Pittaway Kelsey Traynor  Telephone: +44 20 7494 8203 investorrelations@petradiamonds.com  

 

About Petra Diamonds Limited

 

Petra Diamonds is a leading independent diamond mining group and a consistent
supplier of gem quality rough diamonds to the international market. The
Company incorporates interests in two underground mines in South Africa
(Cullinan and Finsch Mines) and Williamson in Tanzania. In January 2025,
Petra announced that it has entered into an agreement to sell its entire
shareholding in the entity that holds Petra's interest in Williamson.

 

Petra's strategy is to focus on value rather than volume production by
optimising recoveries from its high-quality asset base in order to maximise
their efficiency and profitability. The Group has a significant resource base
which supports the potential for long-life operations.

 

Petra strives to conduct all operations according to the highest ethical
standards and will only operate in countries which are members of the
Kimberley Process. The Company aims to generate tangible value for each of its
stakeholders, thereby contributing to the socio-economic development of its
host countries and supporting long-term sustainable operations to the benefit
of its employees, partners and communities.

 

Petra is quoted on the Main Market of the London Stock Exchange under the
ticker 'PDL'. The Company's loan notes, due in 2026, are listed on EuroNext
Dublin (Irish Stock Exchange) . For more information, visit
www.petradiamonds.com.

 

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